New Zealanders are fortunate in that the state provides some insurance cover to homeowners against natural disasters. A public entity, the Earthquake Commission (EQC), is responsible for paying the first $100,000 of damage (all figures in this overview exclude GST) to insured homes after each damaging earthquake.
The 2010 and 2011 earthquakes in Canterbury damaged about 180,000 homes. For more than 20,000 homes, the damage will cost more than $100,000 to repair, so it is the responsibility of private insurers. EQC contributes $100,000 to the cost, but the private insurer manages the claim.
EQC is responsible for the remaining 160,000 or so damaged homes. It anticipates paying cash to settle about half of the claims and managing repairs to the rest.
This report is about how EQC has performed in managing the home-repair programme – a topic that has come under intense public scrutiny. I am aware that there are many stories highlighting examples of poor customer service by EQC. Unfortunately, I cannot provide a remedy for those individuals. My staff have not, and cannot, examine or attempt to resolve disputes about individual claims – that is the role of the Office of the Ombudsman and the courts (because EQC is not covered by the ombudsman scheme for private insurance companies).
What I can do is provide an independent and balanced assessment of EQC's performance in managing the home-repair programme, given the context and circumstances, and highlight where EQC can improve services for those still affected and in preparation for future events.